1986 (4) TMI 117

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...., under s. 143(1) of the IT Act, 1961. Subsequently, the ITO received intimation to the effect that the income of one Mrs. Razia Abu Bakar Usman Khatri had to be assessed in the hands of her mother-in-law, Sakina Bai Khatri, the assessee before us. It was also further intimated that the share income of Razia Abu Bakar Usman Khatri from M/s Rangjoyt Overseas had been determined at Rs. 67,784 for th....

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....t. The ITO rejected this claim by holding that it was really made by Sakina Bai (the assessee) in the name of her daughter-in-law; that the said transfer had been effected after 1st June, 1973 and Razia Usman Khatri having become partner in Rangjoyt Overseas with the gifted amount, s. 64(1)(iv) was attracted. In this view, he brought to tax Rs. 67,784 as the 20% share of Razia Usman Khatri in the ....

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..... Kumar, ld. counsel for the assessee submits that s. 64(1)(vi) was wrongly invoked here. That section provides that all such income arising directly or indirectly to the son's wife of an individual from assets transferred directly or indirectly on or after1st June, 1973by such individual otherwise than for adequate consideration, shall be included in computing the total income of such individual.....

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....xplanation (3) applied on to spouse or minor child and not any other person. Counsel also points out that the authorities below had gone totally wrong in thinking that Razia Usman Khatri was not a working partner. Attention was invited to page 29 of the paper book. A copy of the deed of partnership dt.17th June, 1975under which M/s Rangjoyt Overseas was formed is available here. The business is sh....